Just finished updating the Stock Screens (five of them updated in total), and updated the Market Barometer. Overall the market remains extremely bullish, almost too bullish if you ask me. This could be the point where euphoria starts to set in, and all the newbies (i.e. dumb money) who just recently jumped back into the market, get taken down by it. Not saying it is for sure going to happen, I’m just the caution light at the intersection – you can either choose to go right through the light, or you can show some caution, and yield to the eventual red-light (i.e. protect those gains).
On the stock screens, oil sector is back in full throttle, as they are outweighing all the other sectors on returns my screens are providing. Believing it to be a wise decision to follow the strong industries, we are putting a swing trade out there, which we may or may not pick up today (hopefully we will). The stock is (ESV) and it has a nice risk-reward setup.
Another Industry showing up in my screens is Agricultural/Farm Products and Services. This particular industry popped up probably a month ago, and is once again backing up the oil stocks. In particular agricultural chemicals, like (MOS) (TRA), and (POT), seem to be gaining some momentum.
On the Watch Out Below screener, that looks at potential short opportunities, the semi-conductors are showing up quite a bit in that particular screen. May be something worth looking at there.
Happy Trading Everyone – and hope you all have a good week!
